-During the later years of the empire, farming was done on large estates called latifundia that were owned by wealthy men who used slave labor. A farmer who had to pay workmen could not produce goods as cheaply. Many farmers could not compete with these low prices and lost or sold their farms. This not only undermined the citizen farmer who passed his values to his family, but also filled the cities with unemployed people. At one time, the emperor was importing grain to feed more than 100,000 people in Rome alone. These people were not only a burden but also had little to do but cause trouble and contribute to an ever increasing crime rate. (http://www.rome.info/history/empire/fall/)
-Around 200 B.C. there was an economic crisis, similar to the one we are experiencing today. The plebeians, especially farmers, found themselves unable to afford their homes and they demanded a bailout (an act of giving financial assistance to a failing business or economy to save it from collapse) from the government. When the Senate refused, an uprising occurred, resulting in increased power for the popularly elected Plebeian Council. The country was then essentially controlled by new Plebeian political elites who were, however, mostly concerned with their own power and not about the problems of the people who elected them. (http://www.americanthinker.com/2009/08/obama_a_modern_day_roman_plebe.html)
-As common Plebeians fell further into debt, unemployment rose and farmers could no longer sell their produce, resulting in widespread bankruptcy. People began voting for politicians who promised bailouts. Populist leaders emerged who promised "change." The final decades of the Roman Republic saw an eerily familiar increase in the dependence of the average Roman citizen on their government, along with tax increases to pay for government programs. The Republic had slowly devolved into a democracy wherein people voted themselves benefits they had not earned. Sound familiar? (http://www.americanthinker.com/2009/08/obama_a_modern_day_roman_plebe.html)
-Because wealthy owners had slaves working on everything, the lower class could not compete with the freed laborers and were forced out of jobs. So they became dependent on the government to take care of them. The wealthy were forced to pay high taxes on slaves and were expected to help the community at the same time, so they started freeing their slaves. (http://www.richeast.org/htwm/greeks/romans/slavery/slavery2.html)
-Men in ancient Rome who were unemployed would join the army because they would get free shelter and free food. Men were losing their jobs due to slaves. The slaves were cheaper employees, because they woke for free. Farmers couldn't compete with the low prices there for they would have to sell their farm and all their crops. The unemployed people became very dependent on the governments handouts.
-From expert email:
Dear Professor Rosenstein,
My name is Sydney Ashcraft, and I am a seventh-grader at Nagel Middle School in Cincinnati, Ohio. My classmates and I are working on a project about the problems of ancient Rome. Specifically, I am researching unemployment. I found that you are a history professor at Ohio State University, and was hoping that you could answer some questions that I have.
What caused the economic crisis in ancient Rome that occurred around 200 BCE?
What did the Romans do to slow down the rising unemployment?
How did unemployment contribute to the downfall of ancient Rome?
Thank you so much for your time and help!
Sincerely, Sydney Ashcraft 7th Grade Nagel Middle School
Response: Despite what you may have read in your textbook or other reference works, there was no economic crisis at Rome around 200 BCE. Around the middle of the second century, so roughly 150 BCE, a problem arose because many farmers did not have land to farm. The reasons for their lack of land are controversial, but in my view the problem arose simply because of rising population in Italy. There is a finite amount of land in Italy, and when there are too many people some of them will not have land to farm. Other scholars believe the problem was due to an increase in the number of slaves employed by the rich to work increasing amounts of land, but I've argued in a book titled "Rome at War", that this view is incorrect.
The Roman senate did nothing to slow down rising unemployment. One man, a tribune of the plebs named Tiberius Gracchus, passed legislation to give landless farmers land in 133 BCE; later in 122 and 121 his brother Gaius passed similar legislation. To what extent this slowed or solved the problem is again controversial.
Many scholars believe that the large number of landless farmers supported Caesar when he went to war against the senate because he promised to give them land if he won. The fall of Rome however happened 600 years later, and had little to do with unemployment.
Modern Causes:
Minimum wage is one of the more obvious job deterrents. Companies hire based on the value of the work to be done and not the person doing it. If it costs more to hire someone than the job is worth, the job will not exist. That is just reality. Interestingly, there has been a huge jump in unemployment every July for the last three years following an increase in the minimum wage. Ironically, those hit the hardest by minimum wage generated unemployment are the same ones who were suppose to benefit from such artificial increases — minorities and youth. Minimum wage is a serious job killer.
Taxes on corporations and businesses. The most frustrating aspect of these taxes is that they are a mere fixed cost of doing business. If the costs become too high, businesses move their companies — and the jobs they create — to other parts of the world. Eliminate this barrier to job creation, tax individuals directly through their purchases, and enjoy a more fiscally sound and accountable government.
Reform regulatory and licensure laws. These are both common barriers to job creation, particularly regulations. The Federal Register of Regulations is a source of nightmares for businesses of all sizes. Everyday business owners live in fear of violating the law, which puts pressures on them to have as few employees as humanly possible. The recent health care law of the Obama administration is a shining example of this. According to attorney Judith Sadler, a Price of Business Radio Show Contributor, among the perplex provisions in the legislation is a requirement that companies with fifty are more employees must have a designated room in their offices just for breastfeeding, regardless if there is a need for such. "Fifty employees" is often the threshold for many regulations. The vast majority of businesses (approximately 80 percent) have fewer than 50 employees; this is not only because of the virtues of small business, but the fear of being too successful in the eyes of the government.
Solutions:
The only real remedy for the long-term (and other) unemployed is to have the economy grow fast, as it did after the severe recession in 1982 when unemployment peaked in December of that year at 10.8%, and then fell rather rapidly. There is no magic bullet to accomplish this, but I do believe it would help a lot if the leaders in Washington did not try to radically transform various aspects of the economy while we are recovering from a serious recession, and thereby magnify the high degree of uncertainty that is typically caused by a recession. Instead, they should be concentrating on fighting the recession, and stimulating long-term economic growth.
Statistics:
Among the major worker groups, the unemployment rates for adult women (7.3 percent) and blacks (14.0 percent) edged up in December, while the rates for adult men (7.2 percent), teenagers (23.5 percent), whites (6.9 percent), and Hispanics (9.6 percent) showed little or no change. The jobless rate for Asians was 6.6 percent (not seasonally adjusted), little changed from a year earlier.
In December, the number of long-term unemployed (those jobless for 27 weeks or more) was essentially unchanged at 4.8 million and accounted for 39.1 percent of the unemployed.
My name is Sydney Ashcraft, and I am a seventh-grader at Nagel Middle School in Cincinnati, Ohio. My classmates and I are working on a project in Social Studies. Specifically, I am researching unemployment. I found that you are a professor at University of Connecticut and specialize in economics. I was hoping that you could answer some questions that I have.
What is the government doing to slow down unemployment?
Have any laws or reforms been passed to decrease unemployment?
I know that one cause of unemployment is inflation. What are other causes of unemployment?
Thank you so much for your time and help!
Sincerely,
Sydney Ashcraft
7th Grade
Nagel Middle School
-During the later years of the empire, farming was done on large estates called latifundia that were owned by wealthy men who used slave labor. A farmer who had to pay workmen could not produce goods as cheaply. Many farmers could not compete with these low prices and lost or sold their farms. This not only undermined the citizen farmer who passed his values to his family, but also filled the cities with unemployed people. At one time, the emperor was importing grain to feed more than 100,000 people in Rome alone. These people were not only a burden but also had little to do but cause trouble and contribute to an ever increasing crime rate.
(http://www.rome.info/history/empire/fall/)
-Around 200 B.C. there was an economic crisis, similar to the one we are experiencing today. The plebeians, especially farmers, found themselves unable to afford their homes and they demanded a bailout (an act of giving financial assistance to a failing business or economy to save it from collapse) from the government. When the Senate refused, an uprising occurred, resulting in increased power for the popularly elected Plebeian Council. The country was then essentially controlled by new Plebeian political elites who were, however, mostly concerned with their own power and not about the problems of the people who elected them.
(http://www.americanthinker.com/2009/08/obama_a_modern_day_roman_plebe.html)
-As common Plebeians fell further into debt, unemployment rose and farmers could no longer sell their produce, resulting in widespread bankruptcy. People began voting for politicians who promised bailouts. Populist leaders emerged who promised "change." The final decades of the Roman Republic saw an eerily familiar increase in the dependence of the average Roman citizen on their government, along with tax increases to pay for government programs. The Republic had slowly devolved into a democracy wherein people voted themselves benefits they had not earned. Sound familiar?
(http://www.americanthinker.com/2009/08/obama_a_modern_day_roman_plebe.html)
-Because wealthy owners had slaves working on everything, the lower class could not compete with the freed laborers and were forced out of jobs. So they became dependent on the government to take care of them. The wealthy were forced to pay high taxes on slaves and were expected to help the community at the same time, so they started freeing their slaves.
(http://www.richeast.org/htwm/greeks/romans/slavery/slavery2.html)
-Men in ancient Rome who were unemployed would join the army because they would get free shelter and free food. Men were losing their jobs due to slaves. The slaves were cheaper employees, because they woke for free. Farmers couldn't compete with the low prices there for they would have to sell their farm and all their crops. The unemployed people became very dependent on the governments handouts.
-From expert email:
My name is Sydney Ashcraft, and I am a seventh-grader at Nagel Middle School in Cincinnati, Ohio. My classmates and I are working on a project about the problems of ancient Rome. Specifically, I am researching unemployment. I found that you are a history professor at Ohio State University, and was hoping that you could answer some questions that I have.
Thank you so much for your time and help!
Sincerely,
Sydney Ashcraft
7th Grade
Nagel Middle School
Modern
Causes:
Solutions:
Statistics:
Expert Email:
My name is Sydney Ashcraft, and I am a seventh-grader at Nagel Middle School in Cincinnati, Ohio. My classmates and I are working on a project in Social Studies. Specifically, I am researching unemployment. I found that you are a professor at University of Connecticut and specialize in economics. I was hoping that you could answer some questions that I have.
Thank you so much for your time and help!
Sincerely,
Sydney Ashcraft
7th Grade
Nagel Middle School